Land Tax Declaration Procedures in the Philippines

A practitioner’s guide to declarations, assessments, transfers, and remedies under Philippine local tax law

1) What a “Tax Declaration” Is—and Isn’t

Definition. A tax declaration (TD) is the sworn statement and corresponding record in the local Assessor’s Office describing a parcel of land (and any improvements) for assessment and real property tax (RPT) purposes under the Local Government Code of 1991 (Republic Act No. 7160).
Not a title. A TD does not prove ownership and is not a substitute for a Torrens title. It is, however, admissible as evidence of a claim of possession and for determining tax obligations.
Who keeps it. The Municipal/City/Provincial Assessor maintains the assessment roll and issues the “Certified True Copy of Tax Declaration” upon request.

2) Core Legal Architecture

Governing law. Real property taxation—including declarations, assessments, rates, collections, discounts, penalties, and remedies—is primarily governed by RA 7160 (the Local Government Code, “LGC”), plus relevant local tax ordinances and schedules of fair market values (SFMV) enacted by Sanggunians.
General principles.
- All real property not expressly exempt is taxable.
- Valuation is based on fair market value (via the SFMV) multiplied by assessment levels set by ordinance to arrive at assessed value, the base for the RPT.
- General revision of assessments occurs periodically (commonly every three years) or upon certain events (e.g., discovery of improvements, change in use).

3) The Owner’s Duty to Declare

Who must declare. The owner or administrator of land, buildings, machinery, or other taxable improvements.
When to declare. File a sworn statement declaring the true value of the property once every three years within the period January 1 to June 30 (triennial cycle).
New acquisitions and changes. Upon acquisition, transfer, new construction, renovation, demolition, change in actual use, subdivision/consolidation, or boundary changes, promptly file or update the TD—many LGUs require action within 60 days of the change.
If you don’t declare. The Assessor may suo motu list and assess property based on available information, without prejudice to penalties or surcharges under local ordinances.

4) Declaring Land for the First Time (Initial Declaration)

Typical documentary checklist (land):

Proof of ownership (one or more):
- TCT/OCT (certified true copy) or duly notarized Deed of Sale, Donation, Exchange, Extrajudicial Settlement/Partition, Waiver, Reconveyance, or Judgment;
- For untitled lands: DENR certifications, survey data, tax receipts, possession proofs, or administrative titles where applicable.
Lot/Survey plan with bearings and area, technical description, and vicinity map (from a licensed geodetic engineer).
Latest real property tax receipt (if any).
Barangay/Tax mapping clearance or zoning clearance (as required by the LGU).
Valid IDs of owner/representative; SPA/Board Resolution if filing through an agent.

Steps:

Pre-assessment with the Assessor/Tax Mapper (plotting of boundaries; issuance of inspection request).
Site inspection (Assessor’s staff verifies location, area, use, improvements).
Valuation using the LGU’s SFMV and assessment levels.
Issuance of Tax Declaration (new TD number) and Property Index Number (or equivalent).
Turnover to Treasurer for billing/enrollment into the RPT system.

Note: Requirements vary by LGU; always verify any local checklist or fees (documentary stamps, certification fees, etc.).

5) Declaring Improvements (Buildings/Structures/Machinery)

Additional/typical requirements:

Building Permit, Certificate of Completion/Occupancy, As-built plans, Bill of materials, Machinery specs (for industrial equipment), and photographs.

Process parallels land declaration: inspection, valuation (using SFMV for improvements/machinery), assessment level application, then TD issuance for the improvement (often a separate TD cross-referenced to the land TD).

6) Transfers and “Change of Name” on an Existing Tax Declaration

Scenario: Property is sold or otherwise transferred; the buyer needs the TD updated.

Usual documentary set:

New owner’s title (CTC of TCT/OCT) or duly notarized transfer document;
BIR Clearance (e.g., Certificate Authorizing Registration for sales/donations; Electronic CAR), proof of tax payments (CGT/Withholding, DST, local transfer tax, registration fees as applicable);
Latest RPT receipts / tax clearance;
IDs and SPA/Board Resolution (if via representative).

Steps:

Register the deed with the Registry of Deeds and secure the new title (where applicable).
Present title/deed and clearances to the Assessor to cancel the prior TD and issue a new TD in the buyer’s name (may trigger re-inspection).
Notify the Treasurer for records update and continuing RPT billing to the new owner.

Practice tip: Some LGUs accept annotated deeds while the new TCT is in process; others require the issued TCT—check local rules.

7) Subdivision, Consolidation, and Boundary Changes

Subdivision: Submit approved subdivision plan (LRA/DENR-LMB/LMS), new lot descriptions, and supporting deeds. The Assessor cancels the mother TD and issues separate TDs per lot.
Consolidation: Submit approved consolidation/consolidation-subdivision plan; multiple TDs are cancelled and replaced by a single TD.
Technical corrections (area, boundaries): usually require re-survey, technical notes, and joint affidavits or deeds of correction, subject to inspection.

8) Valuation, Assessment Levels, and the RPT Bill

Fair Market Value (FMV): Taken from the LGU’s Schedule of Fair Market Values (SFMV) per land class (residential, commercial, industrial, agricultural, special).
Assessed Value: FMV × Assessment Level (percentages set by ordinance; levels vary by class and building type/age).
Tax Rate:
- Basic RPT: Up to 1% of assessed value in provinces; up to 2% in cities and municipalities within Metro Manila.
- SEF levy: Additional 1% on assessed value for the Special Education Fund.
- Idle land tax and special assessments may be imposed by ordinance under the LGC.

9) Payment, Discounts, Surcharges, and Delinquency

When to pay: RPT is commonly payable quarterly on or before March 31, June 30, September 30, and December 31, or in full at the start of the year.
Discounts: Many LGUs grant up to 10% discount for advance or prompt full-year payment (check local ordinance).
Interest for delinquency: 2% per month on the unpaid amount, typically capped at 36 months of interest.
Enforcement remedies: Lien on the property by operation of law; levy and public auction after due notice; possible distraint of personal property where allowed.

10) Exemptions and Special Cases

Statutory exemptions (illustrative):
- National/Local Government property (except those beneficially used by private entities).
- Charitable institutions, churches, parsonages/mosques, and non-profit cemeteries, strictly for exempt purposes/use.
- Machinery/equipment for pollution control and certain local incentives.
Conditional nature: Exemptions depend on actual, direct, and exclusive use for the exempt purpose. Mixed or commercial use generally renders the portion taxable.
How to claim: File a sworn application for exemption with supporting documents (articles and by-laws, SEC registration, proofs of charitable/religious/educational use, occupancy permits, site photos), and secure the Assessor’s approval.

11) Assessment Disputes, Protests, and Appeals

Notice of Assessment. The Assessor issues written notice of new or revised assessments.
Payment under protest. You may pay under protest with the Treasurer and file a written protest (commonly within 30 days of payment); the Treasurer typically has 60 days to decide.
Assessment appeals. Separately, you may appeal the assessment to the Local Board of Assessment Appeals (LBAA) within the statutory window (often 60 days from receipt of the assessment notice), then to the Central Board of Assessment Appeals (CBAA), and ultimately to the Court of Tax Appeals on questions of law/fact per jurisdictional rules.
Grounds: errors in area/use/classification; overvaluation vis-à-vis SFMV; illegal or double assessment; exemption qualifications; due-process defects (lack of notice, etc.).
Burden of proof: Generally on the taxpayer to show the assessment is erroneous or excessive.

12) Due-Diligence Uses of Tax Declarations

For buyers/investors:
- Secure CTC of TD, field card, and mapping sketch; compare to title and approved survey to catch overlaps/encroachments.
- Check for multiple TDs over the same area (red flag).
- Verify RPT arrears and liens; require updated tax clearance in closings.
For lenders: TDs help validate assessed value trends and tax compliance of collateral.

13) Practical Filing Tips (to avoid re-work)

Name consistency. Ensure owner’s name in the TD matches the title/deed and government IDs.
Exact area and boundaries. Use recent, signed survey plans; mismatches trigger re-inspection or denial.
Actual use matters. Tax rates depend on actual use (e.g., residential vs. commercial); document it with photos and permits.
Improvements are separate. Declare buildings/machinery distinctly; otherwise you risk back assessments with interest.
Keep timelines. Track the triennial sworn statement window and transfer-notification periods.
Local nuances. LGUs have bespoke checklists, forms, fees, and lead times—always obtain the latest local circular or desk guide.

14) Model Workflow: Purchase of a Titled Lot with a House

BIR & ROD: Pay applicable national taxes (CGT/Withholding, DST), secure eCAR, pay transfer tax, register deed, obtain new TCT.
Assessor (land): Submit new TCT, deed, survey plan, IDs, tax receipts; request cancellation of seller’s TD and issuance of buyer’s TD.
Assessor (improvement): Submit building occupancy, as-built plans/photos; obtain separate TD for the house.
Treasurer: Update RPT records; pay RPT (annual or quarterly); secure tax clearance if needed for future transactions.

15) Frequently Asked Practical Questions

Q: Can I get a TD without a title? A: Some LGUs accept possessory or documentary proofs for untitled property (e.g., surveys, tax receipts, administrative titles). Expect stricter scrutiny and possible conditional TDs. A TD still isn’t conclusive ownership proof.
Q: Does a TD lapse? A: The TD record remains, but valuation and use must be kept current. You still need to file the triennial sworn statement and update upon changes.
Q: What if the Assessor’s valuation is too high? A: Use the protest and assessment appeal routes; bring comparables, SFMV references, photos, and technical reports.
Q: Can I get discounts? A: Many LGUs grant early-payment discounts (commonly up to 10%); confirm local ordinance and cut-off dates.

16) Records You Can Request (and Why)

Certified true copy of TD – confirms the property’s assessed profile.
Assessment roll/field appraisal card – reveals valuation basis and inspection notes.
Map extract / tax map – validates location and adjacency.
Statement of account / RPT clearance – shows arrears, interests, and compliance.
SFMV & assessment levels table – anchors any protest/appeal valuation arguments.

17) Compliance Calendar (at a glance)

Jan 1–June 30 (every 3rd year): File sworn statement of true value/TD update.
Quarterly RPT deadlines: Mar 31 / Jun 30 / Sep 30 / Dec 31 (or pay in full early to avail of discounts).
Within 60 days of transfer/change: Notify Assessor to cancel/issue TDs; file for reclassification if use changes.

18) Final Notes

Always cross-check the TD against the title, survey, and zoning data.
Treat the TD as a tax and assessment document, not as proof of ownership.
Because LGU procedures vary, obtain the current local checklist and fee schedule before filing.
For complex cases (untitled lands, overlapping claims, exemptions, or large-scale valuation disputes), consider consulting a Philippine real estate/tax counsel or a licensed geodetic engineer for technical validation.

This article summarizes standard practices under RA 7160 and common LGU procedures. It’s for general information only and not a substitute for legal advice or the specific ordinances of the LGU where the property is located.